Palm Oil Export Shows Impressive Progress in Early 2019
After a tough performance in 2018, Indonesian palm oil and its derivatives export showed impressive progress in early 2019. In the first month of this year, CPO export rose 4 percent driven by an increase in export to Africa.
CPO shipment to Africa rose 74% from 181.48 thousand tons in December 2018 to 315.91 thousand tons in January 2019. CPO export also rose to Bangladesh 43%, USA 26%, the Middle East 13%, dan India 9%.
According to data published by the Indonesian Palm Oil Association (Gapki), the total palm oil shipment in January reached 3.25 million tons, rose from 3,13 million tons in a month earlier.
Gapki’s chairman Mukti Sardjono said on a press release, Monday (3/4/2019), that high demand from non-tradisional market has increased palm oil export. However, Mukti saw a potential slowdown in Indian demand as the country has lowered import duty on Malaysian CPO from 44% to 40% and from 54% to 45% for refined palm oil products. Malaysia is the biggest competitor of Indonesia in palm oil market. “We called on the government to lobby India for a special treatment for Indonesian products,” Mukti said.
Indonesia will have to take stronger measures on Indian trade policy because at the same time CPO shipment to Pakistan decreased 8.5% from 290.26 thousand tons in December 2018 to 265.49 thousand tons in January 2019. A significant drop was also recorded in export to European Union 4% and to China 3%. “China’s import has been stagnant since the country promoted mandatory of renewable energy.”
Gapki also revealed that Indonesian palm oil stockpiles at the end of January 2019 was down 7% at 3.02 million tons from 3.26 million tons in December 2018. (Source: Warta Ekonomi)